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Challenger or collaborator: Affirm’s BNPL is on its way to joining Apple Pay

  • The collaboration between Affirm and Apple is different, particularly because Apple also provides its own direct-to-consumer BNPL service.
  • The Affirm-Apple partnership offers positive outcomes for both firms given Apple Pay Later does not directly challenge Affirm's BNPL offering.
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Challenger or collaborator: Affirm’s BNPL is on its way to joining Apple Pay

    What does an atypical partnership look like?

    US consumers are increasingly turning to digital wallets, with a significant 64% now indicating that they use them as frequently as traditional payment methods such as cash or cards, according to a survey. Meanwhile, over half [53%], report using digital wallets even more frequently than traditional methods.

    These compelling figures have sparked conversations about the future landscape of transactions, with many asserting that digital wallets represent the future. Amid this fervor, a pertinent question emerges: Is buy now, pay later set to join credit and debit cards as a mainstream payment option? This query gains momentum, particularly in light of the recent partnership announcement between BNPL provider Affirm and Big Tech firm Apple.

    The news: In yet another subtle move, Apple has expanded its range of installment loan options for Apple Pay users, opting for quiet implementation over flashy advertising. 

    This latest move sees Affirm scoring another victory as its buy now, pay later service extends to Apple device users this fall. Those in the US can apply for loans through Affirm directly within the Apple Pay checkout process. “The news is a big positive for AFRM, especially since the stock traded down several times in the past when Apple announced its entry into BNPL,” said Mizuho analyst, Dan Dolev.

    Additionally, installment options via credit and debit cards will soon be accessible on Apple Pay in the US through partnerships with Citigroup, Synchrony, and Fiserv-related issuers. 

    What’s in it for Affirm?

    In joining forces with Apple, Affirm aims to enrich its user experience by providing additional payment choices to Apple Pay users who were previously confined to Apple’s native Pay Later option to pay in installments when making purchases online or within apps on their iPhones and iPads. Now they can use Apple Pay for transactions while also tapping into Affirm’s flexible installment payment solutions at checkout.

    What happens to Apple Pay Later?


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